Dubai World Weighs Debt Deal for Banks

By
Mirna Sleiman

Updated Feb. 15, 2010 6:16 am ET

DUBAI—Dubai World may offer its creditors 60% of the money they are owed, backed by the sheikdom's government, as part of a deal to reschedule $22 billion of debt, people familiar with the matter told Zawya Dow Jones.

The potential offer includes no provision for annual interest payments, but calls for creditors to receive 60 cents for every U.S. dollar loaned to the troubled conglomerate after seven years. Lenders would receive an interest payment at that time. Repayment would be guaranteed by the Dubai government. Dubai...